Bulgaria has been named the cheapest place to go on holiday this year

Sunny Beach is the best resort for a break on a budget

If you're planning a holiday without a budget-breaking bill, this travel news has arrived at the perfect time.

Bulgaria has been named the cheapest holiday destination of 2018 in the Post Office's annual Holiday Costs Barometer. The report compares the average prices that holidaymakers will have to pay for eight essential holiday items in 42 destinations. The items include a coffee from a local cafe, a large bottle of mineral water, suncream and a three-course evening meal, including wine, at a local restaurant. It's worth noting that flight and hotel prices are not taken into account.

The total cost of items at Bulgaria's Sunny Beach resort came to just under £38. Tokyo was ranked in second place, making it the best value long-haul destination, with a total cost of just over £43. The Algarve, which was been named the cheapest holiday resort for the last two years, slipped to third place with an average bill of just over £44.

The most expensive destinations were found to be China Town in Singapore, where the items cost almost £154 on average, followed by Jumeirah in Dubai, and Muscat in Oman.

The report indicates that there is good news for globetrotters, though. It found prices to be lower than a year ago in over 40% of the destinations surveyed. This is partly because of the stronger pound (particularly in long haul destinations) but also because of local price falls.

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"The squeeze on spending at home means holiday resorts and cities where the pound will stretch further or where local prices are cheap are likely to reap the benefit of increasing visitor numbers in 2018," Andrew Brown of Post Office Travel Money said.

Ready for a holiday? Here's the top 10 cheapest destinations according to the Post Office report:

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